The SEC may prepare additional justifications for rejecting spot bitcoin ETF applications even after a court ruled the agency must reassess a rejection, according to Berenberg.
In a Wednesday report, Berenberg analysts said the SEC could cite ongoing concerns around the spot bitcoin market as a reason to continue blocking spot bitcoin ETFs. This is despite a federal court decision vacating the SEC’s rejection of Grayscale’s Bitcoin ETF application.
Also read: Crypto Asset Manager Grayscale Wins Lawsuit Against the SEC
Grayscale ruling not decisive
While Grayscale’s legal victory improves the odds of the Bitcoin ETF’s approval, Berenberg cautioned that it does not guarantee it. The court simply mandated the SEC re-evaluate its rationale behind rejecting Grayscale, not necessarily approving future spot bitcoin ETFs.
Further, the commission could opt to appeal the ruling rather than comply with a review. This demonstrates the agency still has avenues to stall spot bitcoin ETFs if it wishes.
Also read: Grayscale Beats SEC in Court, Bitcoin ETF Chances Improve: Bernstein
By crafting fresh arguments centered on concerns around potential manipulation in the bitcoin spot markets, the commission may continue to fend off applications despite mounting legal pressure. The fate of a spot bitcoin ETF thus remains uncertain.
